The Central Bank of Nigeria has ordered banks operating in the country to start charging a cybersecurity levy on transactions.
A circular from the apex bank on Monday, May 6, 2024, informed the implementation of the levy would start two weeks from today (yesterday).
The circular was directed to all commercial, merchant, non-interest and payment service banks, among others, as reported by The Nation.
The circular stated it was a follow-up on an earlier letter dated June 25, 2018 (Ref: BPS/DIR/GEN/CIR/05/008) and October 5, 2018 (Ref: BSD/DIR/GEN/LAB/11/023), respectively, on compliance with the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015.
It said: “Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month.”
Some exemptions from the levy are loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, and intra-bank transfers between customers of the same bank.
Below is the list of exemptions from the cybersecurity charges:
1) Loan disbursements and repayments
2) Salary payments
3) Intra-account transfers within the same bank or between different banks for the same customer
4) Intra-bank transfers between customers of the same bank
5) Other Financial Institutions (OFIs) instructions to their correspondent
6) Banks Interbank placements
7) Banks’ transfers to CBN and vice-versa
8) Inter-branch transfers within a bank
9) Cheques clearing and settlements
10) Letters of Credits (LCs)
11) Banks’ recapitalization related funding – only bulk funds movement from collection accounts
12) Savings and deposits including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
13) Government Social Welfare Programs transactions e.g. Pension payments
14) Non-profit and charitable transactions including donations to registered nonprofit organisations or charities.
15) Educational Institutions transactions, including tuition payments and other transaction involving schools, universities, or other educational institutions.
16) Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
